Banks fail in Eastern Europe

Croatian and Latvian Bank became the top victims of financial crisis in Eastern Europe. The committee on financial and capital markets of Latvia imposed a ban, on Monday, on all financial services provided by the institution because of a lack of established several tens million lats. The activity of the board of directors and management of the bank was terminated. The next step is its liquidation.

Croatian Central Bank revoked the license of the local Credo Bank. This is the first bank failure in Croatia since the beginning of the crisis. In recent years the bank operated at a loss, and in May this year it was found that its administration has given false reports of the central bank, presenting the situation better than it was in reality. The share of Credo Bank in Croatian banking system is 0.44%, so its failure would not have significant consequences.